Kuwait Finance House K S C P : KFH achieves growth in local and foreign trade finance operations

Kuwait Finance House (KFH) continued to achieve growth in the volume of L/Cs and L/Gs related to local and foreign trade finance. This comes as part of the bank's keenness to support trade activities and companies of all categories.

KFH succeeded in providing customers with suitable finance channels and played a distinguished role as a mediator between the seller and the buyer, thus achieving remarkable success and growth in trade operations by providing letters of guarantee LG and letters of credit LC.

KFH is distinguished for having highly qualified national cadres and adopting the latest technology applications in the trade finance sector regarding the opening of L/Cs and L/Gs, thus contributing to the enhancement of customers' experience and giving them access to any place worldwide through a vast network of correspondent banks using Hi-Tech communication systems.

KFH has come a long way in introducing innovative solutions and alternatives for foreign trade finance by using documentary credit and sharia compliant finance tools, thus overcoming several challenges which trade exchange process has faced.

KFH released recently "Swift Transfer Control" Service according to the highest levels of safety and quality. The service enables the bank to conduct a direct and real time tracking on financial transfers with the function to receive alerts and stop transfer payments.

In addition to continuing to offer and develop finance channels to fulfil customer's aspirations and providing well balanced trade relations, KFH introduces a set of products to enhance import and export activity including On Sight L/Cs which provide customers with the highest levels of security upon importing merchandise from abroad or even supplying them inside Kuwait, Acceptance L/C which is a deferred payment L/C according to which payment to the foreign supplier is deferred for a certain agreed period after dispatch of cargo or receipt of bill of lading, and refinanced L/C through Murabahah according to which the customer's merchandise is imported on his account. Once the mechanize arrives the customer can buy it from KFH for a known profit and settle its value on flexible instalments to suite each customer's cash flows. Also, KFH provides export credit product which contributes to the activation of the foreign export movement and support local products including oil and gas. The export credit is delivered or endorsed in favor of the exporter in Kuwait upon instructions from the importer and his bank outside Kuwait. Thereafter, the customer receives his money upon completion of the specifications of the exported merchandise.

Regarding L/Gs, KFH issues different types of L/Gs to suite the nature of each project including initial guarantees (tenders), performance guarantees (final), maintenance contracts, initial payment, or letters of guarantees relating to financial guarantee for the labor of corporates, establishments, and individuals.